• Mexican peso holds onto weekly gains versus the US dollar.
  • Emerging market currencies resist the wave of risk aversion well.
  • USD/MXN heads for the third weekly decline in a row.

The USD/MXN dropped further on Friday and bottomed at 19.84, the lowest level in a month. It then trimmed losses and climbed toward 19.90 as Wall Street turned negative.

Emerging market currencies resisted the wave of risk aversion so far but the negative tone across financial markets remains a great risk. More tensions could hit not only emerging markets' assets but also their currencies.

Wall Street indices opened positive on Friday and then changed their course. The Dow Jones is falling by 0.71% and the S&P 500 drops by 0.63%. The move pushed USD/MXN back to the 19.90 area.

 A daily close below should keep the negative momentum intact, with scope for a test of the next support at 19.80. The next level to watch is seen at the April low at 19.72.

If the US dollar manages to recover above 19.90 it would alleviate the bearish bias. The next critical resistance stands at 20.05. If USD/MXN rises above the 20-day Simple Moving Simple at 20.20, it would negate the bearish short-term outlook.

usdmxn

USD/MXN

Overview
Today last price 19.8414
Today Daily Change -0.0931
Today Daily Change % -0.47
Today daily open 19.9345
 
Trends
Daily SMA20 20.2361
Daily SMA50 20.1848
Daily SMA100 20.3695
Daily SMA200 20.4441
 
Levels
Previous Daily High 20.0737
Previous Daily Low 19.8712
Previous Weekly High 20.475
Previous Weekly Low 20.0781
Previous Monthly High 20.6382
Previous Monthly Low 19.7269
Daily Fibonacci 38.2% 19.9485
Daily Fibonacci 61.8% 19.9963
Daily Pivot Point S1 19.8459
Daily Pivot Point S2 19.7573
Daily Pivot Point S3 19.6434
Daily Pivot Point R1 20.0484
Daily Pivot Point R2 20.1623
Daily Pivot Point R3 20.2509

 

 

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